Banks stop issuing loans to northwest Pakistan’s traders

Declaring Northwest Frontier Province (NWFP) of Pakistan as a high risk zone, various banks in the province has stopped the issuance of loans to the small traders and business.

Informed sources said that the banks had already stopped the car finance to the people in the province after declaring it as a red zone and now they have suspended the loans disbursement to small traders declaring the province as a high risk zone.

But on the other hand, the State Bank’s chief manager Tasleem Qazi denied any such step and said the bank will look into the matter.

The NWFP Senior Minister Bashir Ahmed Bilour said the government will take up the issue with the concerned banks as it will be detrimental to the trade and economic activities in the province.

The sources say the corporate sector has already been shifted to Islamabad and now the banks are unwilling to issue loans which will destroy the economic activities in the province.
The traders’ community while complaining that the banks were using delaying tactics in issuance of loans to traders said they are planning to boycott these banks.

The member of Sharhad Chamber of Commerce and Industry (SCCI) said the banks had been giving a cold shoulder response to the traders’ demands for loans and now the legal complications will destroy the province’s economy.

Though the NWFP government said it will take up the issue with the banks, but the traders’ pleas to the federal government in this regard still remains undecided.

- Asian Tribune -